Walker & Dunlop Reports 18% Revenue Growth to $319.2 Million in Latest Quarter

Walker & Dunlop, Inc. reported significant financial performance improvements in its latest quarterly results, with total revenues reaching $319.2 million for the three months ended June 30, 2025, an increase of 18% compared to $270.7 million in the same period last year. The company's net income also rose to $33.9 million, up 67% from $20.3 million in the prior year, resulting in diluted earnings per share of $0.99, compared to $0.67 a year earlier. For the first half of 2025, revenues totaled $556.6 million, a 12% increase from $498.7 million in the first half of 2024, while net income increased by 6% to $36.7 million.

The company experienced notable growth in several key revenue streams, particularly in loan origination and debt brokerage fees, which surged by 44% to $94.3 million, driven by a significant increase in debt financing volumes, especially from Fannie Mae. The fair value of expected net cash flows from servicing also saw a 59% increase, contributing $53.2 million. However, investment management fees declined by 49% to $7.6 million, reflecting a decrease in asset management fees from low-income housing tax credit operations.

Operationally, Walker & Dunlop's servicing portfolio grew to $137.3 billion as of June 30, 2025, compared to $135.3 billion at the end of 2024. The company reported a 4% increase in assets under management, totaling $18.6 billion. The total managed portfolio increased by 4% year-over-year, indicating a stable growth trajectory. The company also noted a 22% increase in transaction volumes, with debt financing volume reaching $11.6 billion in the second quarter, up from $6.9 billion in the same quarter of the previous year.

In terms of strategic developments, Walker & Dunlop has focused on expanding its small-balance multifamily lending platform and enhancing its technology capabilities. The company has made investments in technology to improve customer experience and operational efficiency. Additionally, the company has maintained a strong liquidity position, with cash and cash equivalents totaling $233.7 million as of June 30, 2025, although this represents a decrease from $279.3 million at the end of 2024. The company is also in compliance with all financial covenants related to its warehouse facilities and notes payable.

Looking ahead, Walker & Dunlop anticipates continued growth driven by the recovery in the commercial real estate market and increased lending activity from government-sponsored enterprises. The company expects to benefit from stable interest rates and a favorable lending environment, which should support its transaction volumes and overall financial performance in the coming quarters.